Trending

treasurys

As Ben Bernanke pulled a trick from the 1960s Fed handbook to twist down long-term interest rates, experts are mixed on how it will affect the U.S. economy. Wall Street certainly reacted negatively to the news. The Dow fell more than 280 points.

Is the Fed's second round of monetary stimulus helping stocks? The markets ended the week on a high note with encouraging economic news, a surprise jump in consumer sentiment and a drop in the trade deficit, among other things. From the floor of the New York Stock Exchange, Kenneth Polcari explains.

It's no secret that stock investors have suffered through roller-coaster volatility this year for no real return, while bond investors have been having a ball. The longest-dated Treasury mutual funds have returned nearly 20%. Stocks, meanwhile, have done zilch.

Stocks enjoyed a respite from what some see as a bubble in pessimism, and that sudden turn should be unnerving to a fast-growing crowd of individual investors: those who have recently raced into ultrasafe holdings like U.S. government bonds.

With more big names raising concerns about overheated T-bonds, what's an investor with a Treasury-heavy portfolio to do? Some ideas: Consider corporate bonds or perhaps stick with government debt, but only short-term securities.

The major averages rallied sharply Wednesday with the blue-chip Dow closing up 274 points, fueled by a rosier earnings forecast from money manager State Street Corp. and anticipation of strong monthly retail sales reports on Thursday.

A surprise plunge in a key reading of consumer confidence sent U.S. stocks to their lowest close of 2010, with the blue-chip Dow down below the 10,000 level. Again. Coming after bad news in Asia and Europe, U.S. equities never had a chance.

The Dow jumped more than 270 points to close solidly above 10,000 Thursday as encouraging economic data out of China and a soothing growth forecast from the European Central Bank once again whetted traders' appetite for risk. The dollar, Treasurys and gold fell, while oil prices topped $75 a barrel for the first time in nearly a month.

Global appetite for U.S. financial assets slowed markedly in December, and demand for federal debt fell by a record amount as China dumped more than $34 billion in American IOUs, the Treasury said Tuesday. China cut its holdings for a second straight month.